Robert Lee v. PeopLease Corporation
Decision date: May 16, 201318 pages
Summary
The Labor and Industrial Relations Commission affirmed the Administrative Law Judge's award granting lifetime permanent total disability benefits under Schoemehl to the widow of a deceased employee. The Commission rejected the Second Injury Fund's argument that divestment provisions should apply, relying on controlling precedent from Spradling v. Treasurer of Missouri which established that Schoemehl benefits must be paid over the lifetime of surviving dependents.
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Caption
| FINAL AWARD ALLOWING COMPENSATION (Affirming Award and Decision of Administrative Law Judge with Supplemental Opinion) |
| Employee: | Robert G. Lee, deceased |
| Dependent/Substitute Party: | Cynthia Lee, widow |
| Employer: | PeopLease Corporation (Settled) |
| Insurer: | Insurance Company of State of Pennsylvania (Settled) |
| Additional Party: | Treasurer of Missouri as Custodian of Second Injury Fund |
| This workers' compensation case is submitted to the Labor and Industrial Relations Commission (Commission) for review as provided by § 287.480 RSMo. Having read the briefs, reviewed the evidence, and considered the whole record, we find that the award of the administrative law judge allowing compensation is supported by competent and substantial evidence and was made in accordance with the Missouri Workers' Compensation Law. Pursuant to § 286.090 RSMo, we affirm the award and decision of the administrative law judge with this supplemental opinion.On appeal before this Commission, the Second Injury Fund argues that the administrative law judge erred in awarding benefits underSchoemehl v. Treasurer of State, 217 S.W.3d 900 (Mo. 2007) to employee’s dependent. The Second Injury Fund argues that the divestment provisions applicable to death benefits under § 287.240(4) RSMo are applicable here and that they preclude a lifetime award of benefits underSchoemehlto employee’s dependent. The Second Injury Fund asks that we modify the administrative law judge’s findings to provide that benefits underSchoemehlare subject to revocation under § 287.240(4).We write this supplemental opinion to note the decision by the Missouri Court of Appeals, Southern District, inSpradling v. Treasurer of Missouri, SD31907 (April 24, 2013). There, the court addressed an appeal arguing that the Commission erred in awarding permanent total disability benefits underSchoemehlto a deceased employee’s dependents “for life.”Id. at pg. *3. The Court determined that the Commission did not err becauseSchoemehl “require[s] compensation be paid for permanent total disability not only over the lifetime of [the employee], but also over the lifetime of any of his surviving dependents.”Id. at pg. *8.We conclude that the holding inSpradling is dispositive of the argument raised by the Second Injury Fund, herein. In light of the holding inSpradling, we will not disturb the administrative law judge’s award granting weekly permanent total disability benefits underSchoemehlto Cynthia Lee for her lifetime. | |
| Conclusion | |
| We affirm and adopt the award of the administrative law judge as supplemented, herein. |
The award and decision of Administrative Law Judge Karen Fisher, issued April 27, 2012, is attached and incorporated by this reference.
We approve and affirm the administrative law judge's allowance of attorney's fee herein as being fair and reasonable.
Any past due compensation shall bear interest as provided by law.
Given at Jefferson City, State of Missouri, this $16^{\text {th }}$ day of May 2013.
LABOR AND INDUSTRIAL RELATIONS COMMISSION
V A C A N T
Chairman
CONCURRING OPINION FILED
James Avery, Member
Curtis E. Chick, Jr., Member
Attest:
Secretary
I write this concurring opinion to voice my agreement with certain of the views expressed by Presiding Judge Gary W. Lynch in the Spradling case. Writing separately, Judge Lynch drew attention to the absurdity of providing lifetime benefits under the Missouri Workers' Compensation Law to the family of an employee whose death has nothing to do with work, where the same family would receive far less compensation if the employee had died as a result of the work injury:
One of the two rationales stated in Schoemehl ... was to prevent the "unreasonable result" of allowing surviving dependents to receive permanent partial disability benefits but not permanent total disability benefits. Schoemehl v. Treasurer of State, 217 S.W.3d 900, 903 (Mo. banc 2007). I write separately to lament that our constitutional obligation to follow Schoemehl, MO. CONST. art. V, § 2 (1945), now requires this Court to affirm what I consider to be the unreasonable result of awarding lifetime benefits to surviving dependents where the employee's death was unrelated to the work injury, when the surviving dependents would have only received benefits during the time of their dependency if the employee's death had been caused by the work injury.
Spradling v. Treasurer of Missouri, SD31907 (April 24, 2013) (Lynch, P.J., concurring) at pg. *15.
Before issuance of the Spradling decision, I was of the belief that Gervich v. Condaire, Inc., 370 S.W.3d 617 (Mo. 2012) and White v. Univ. of Mo., 375 S.W.3d 908 (Mo. App. 2012) provided ample authority for reading $\S 287.240(4)$ RSMo in such a way as to prevent the unreasonable result identified by Judge Lynch. But in light of the holding in Spradling, which I agree is dispositive of the issue whether the divestment provisions under § 287.240(4) are applicable to an award of Schoemehl benefits, I must reluctantly join in the decision to affirm the administrative law judge's award of lifetime permanent total disability benefits to employee's dependent.
James Avery, Member
AWARD
| Employee: | Robert G. Lee (deceased) | Injury No. 06-021233 |
| Dependents: | Cynthia Lee - sole dependent \& substituted party | Before the <br> Division of Workers' <br> Compensation |
| Employer: | PeopLease Corporation | Department of Labor and Industrial |
| Additional Party: | Second Injury Fund | Relations of Missouri |
| Insurance Co. of State of Pennsylvania | Jefferson City, Missouri |
Hearing Date: January 20, 2012
Checked by:
FINDINGS OF FACT AND RULINGS OF LAW
- Are any benefits awarded herein? Yes
- Was the injury or occupational disease compensable under Chapter 287? Yes
- Was there an accident or incident of occupational disease under the Law? Yes
- Date of accident or onset of occupational disease: February 7, 2006
- State location where accident occurred or occupational disease was contracted: Noble, Illinois
- Was above employee in employ of above employer at time of alleged accident or occupational disease? Yes
- Did employer receive proper notice? Yes
- Did accident or occupational disease arise out of and in the course of the employment? Yes
- Was claim for compensation filed within time required by Law? Yes
- Was employer insured by above insurer? Yes
- Describe work employee was doing and how accident occurred or occupational disease contracted: Claimant injured his back as the result of falling from a truck.
- Did accident or occupational disease cause death? No. Date of death? N/A
- Part(s) of body injured by accident or occupational disease: Lower back
- Nature and extent of any permanent disability: Settled as to Employer/Insurer. PTD as against the Second Injury Fund.
- Compensation paid to-date for temporary disability:
- Value necessary medical aid paid to date by employer/insurer? None.
- Value necessary medical aid not furnished by employer/insurer? N/A
- Employee's average weekly wages: $\ 775.88
- Weekly compensation rate: $\$ 517.25 / \ 365.08
- Method wages computation: By stipulation.
COMPENSATION PAYABLE
- Amount of compensation payable: Settled as against Employer and its Insurer.
- Second Injury Fund liability:
For accrued permanent total disability benefits,
The sum of $\ 152.17 for 60 weeks, and the sum of $\ 517.25 for $2052 / 7 weeks
TOTAL: \ 115,314.23
- Future requirements awarded:
Beginning January 20, 2012and continuing for the remainder of Cynthia Lee's life, the Second Injury Fund shall pay $\ 517.25 each week as permanent total disability benefits.
The compensation awarded to the claimant shall be subject to a lien in the amount of 25 percent of all payments hereunder in favor of the following attorney for necessary legal services rendered to the claimant: John Wise
FINDINGS OF FACT and RULINGS OF LAW:
Employee: Robert G. Lee (deceased)
Injury No. 06-021233
Dependents: Cynthia Lee - sole dependent \& substituted party
Employer: PeopLease Corporation
Additional Party: Second Injury Fund
Insurer: Insurance Co. of State of Pennsylvania
Hearing Date: January 20, 2012
Before the
Division of Workers'
Compensation
Department of Labor and Industrial
Relations of Missouri
Jefferson City, Missouri
INTRODUCTION
The undersigned Administrative Law Judge conducted a final hearing in this case on January 20, 2012, in Joplin, Missouri. The claim against the employer and its insurer settled prior to the hearing. The hearing was held to determine the extent of any liability against the Second Injury Fund. Attorney, John Wise, appeared with his client, Cynthia Lee (claimant). Assistant Attorney General Todd Smith represented the Treasurer of Missouri as Custodian of the Second Injury Fund of Missouri.
STIPULATIONS
The parties stipulated that Claimant sustained a work related injury while employed by PeopLease Corporation on February 7, 2006. Claimant was a covered employee at the time of the injury and his employer was subject to the workers' compensation law. The parties further stipulated that the contract of hire was entered into in Mount Vernon, Lawrence County, Missouri. Thus, jurisdiction is proper. Claimant's average weekly wage was $\ 775.88, yielding a permanent partial disability rate of $\ 365.08 and a permanent total disability rate of 517.25 . There is no dispute as to notice, statute of limitations, venue, or course and scope of employment.
ISSUES
The parties agree that the sole issues are whether the Second Injury Fund has any liability and the extent of that liability. Claimant's attorney, John Wise, also seeks an attorney fee of 25 percent.
EXHIBITS
The following exhibits were admitted on behalf of Claimant:
A. Stipulation for Compromise Settlement 06-021233
B. Stipulation for Compromise Settlement 02-055352
C. Order substituting Cynthia Lee as claimant in place of the deceased employee, Robert G. Lee
D. Marriage Certificate
E. Deposition of Robert Lee
F. Deposition of Dr. Robert Paul
G. Medical Records - Bridges Medical Center
H. Medical Records - St. John's
I. Medical Records - Dr. Hish Majzoub
J. Medical Records - St. John's
K. Medical Records - Doctors Hospital
L. Medical Records - St. John's
M. Medical Records - St. John's Spine
N. Curriculum Vitae - Phillip Eldred
O. Report - Phillip Eldred
The follow exhibit was admitted on behalf of the Second Injury Fund:
Deposition of Dr. Daniel Kitchens
FINDINGS OF FACT
Robert Lee (Employee) died on June 12, 2011, at the age of 50 years. The Certificate of Death reflects that Mr. Lee died from causes unrelated to his occupational injury of February 7, 2006. That document reflects that he passed away from cardiac arrest and possible cardiac arrhythmia. An order substituting as claimant his surviving spouse, Cynthia Lee, was signed by Administrative Law Robert House on July 9, 2011.
Ms. Lee testified at the hearing in this matter. She testified that she and Mr. Lee were married on April 30, 1987. She confirmed that he passed away from causes unrelated to his occupational injury. Ms. Lee was married to Mr. Lee continuously from April 30, 1987 to June 12, 2011, the date of his death. She confirmed that she was married to him on the date of his occupational injury, February 7, 2006.
Ms. Lee also testified that she and Mr. Lee had one child, who did not survive infancy. She testified that no one, other than herself, was dependent on Mr. Lee for support as of February 7, 2006, the date of his death, or anytime between such dates. Mr. Lee was deposed by Elijah Haahr, counsel for employer and insurer, and Christina Hammers, counsel for the Second Injury Fund, on April 1, 2009. A transcript of that deposition testimony was admitted into evidence.
Mr. Lee completed the $11^{\text {th }}$ grade and obtained a GED in 1979. He attended no formal education after high school other than plumbing school and truck driving school. Mr. Lee
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